01910cam a22002657 4500001000600000003000500006005001700011008004100028100002300069245017200092260006600264490004100330500001700371520078000388530006101168538007201229538003601301690007701337700001901414700002001433710004201453830007601495856003701571856003601608w7862NBER20180319082529.0180319s2000 mau||||fs|||| 000 0 eng d1 aBurstein, Ariel T.10aDistribution Costs and Real Exchange Rate Dynamics During Exchange-Rate-Based-Stabilizationsh[electronic resource] /cAriel T. Burstein, Joao C. Neves, Sergio Rebelo. aCambridge, Mass.bNational Bureau of Economic Researchc2000.1 aNBER working paper seriesvno. w7862 aAugust 2000.3 aThis paper studies the role played by the distribution sector in shaping the behavior of the real exchange rate during exchange-rate-based-stabilizations. We use data for the U.S. and Argentina to document the importance of distribution margins in retail prices and disaggregated price data to study price dynamics in the aftermath of Argentina's 1991 Convertibility plan. Distribution services require local labor and land so they drive a natural wedge between retail prices in different countries. We study in detail the impact of introducing a distribution sector in an otherwise standard model of exchange-rate-based-stabilizations. We show that this simple extension improves dramatically the ability of the model to rationalize observed real exchange rate dynamics. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aF41 - Open Economy Macroeconomics2Journal of Economic Literature class.1 aNeves, Joao C.1 aRebelo, Sergio.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w7862.4 uhttp://www.nber.org/papers/w786241uhttp://dx.doi.org/10.3386/w7862